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What are the peculiar problems of small business enterprise?
Capital is one of the major problems of small business enterprise.
Problems associated with peasant farming in Trinidad?
Pests and diseases and flooding being the major problems low capital , Markets , Praedial Larceny, Equipment and technology, land ownership, lack or government assistance and low productivity being the minor problems.
What are the advantages of raising extra capital from shareholders?
The extra capital does not have interest charges and it doesn't to be repaid to the shareholders because it is a permanent source of finance to the business. Raising capital is a low financial risk to the business therefore the business assets are not used as security for payment. Raising extra capital is also cheaper than taking a financial loan. Shey
4- What problems might arise if a firm is operating with very low working capital?
The risk of trading whilst insolvent.
What are capital in business?
The amount of money invest in business is called capital.
What is the role of capital in business?
Capital is the financial foundation of any business. It refers to the money and assets a business uses to fund its operations, grow, and achieve its goals. Here’s what capital does for a business: ✅ Provides Startup Funds: Capital allows entrepreneurs to buy equipment, lease space, hire employees, develop products, and launch their business. ✅ Enables Day-to-Day Operations: Working capital pays for ongoing expenses like salaries, rent, utilities, inventory, and marketing. Without enough capital, even profitable businesses can run into cash flow problems.
What are the main problems of business?
Some of the main problems facing businesses is raising enough capital, finding the right people and competing the right way in the industry. When a business finds a way to address these issues they can see progress in their strategic plans.
What is the amount of the capital?
Capital is the amount which invested by the owners of business in business and refundable by business at the time of liquidation.
What is the difference between WACC and cost of capital?
Cost of capital is that amount which is incurred by business to acquire cost for working capital or business while WACC(Weighted average cost of capital) is that cost which is calculated if there is more than one type of capital is involved by business to arrange finances for business.
What are the main elements in calculating cost of capital How would an increase in debt affect the cost of capital How would you identify the optimal cost of capital for an organization?
Capital is calculated by subtracting the business costs from the profits gained from products and services. An increase in debt would decrease the total capital by increasing business costs. The optimal cost of an organization is low debt and high credits.
Is contributed capital a debit or credit?
As capital is a contibution by company owner towards business and capital is a liability of a business and due to which it has credit balance, that's why any contribution towards capital will be treated as liability of business and it will be credited to capital to increase capital
What are the 2 types of capital?
fixed capital : capital invested in the fixed assets of the business. such as buildings,machinery working capital: capital invested in the running of the business expenses and activities
